Monica Long, the President of Ripple, recently shed light on the distinct yet supportive roles that the upcoming RLUSD stablecoin will assume in tandem with XRP, catering to both developers and payment processors.
During her appearance on The Scoop podcast, Long was prompted to clarify the rationale behind introducing RLUSD for international transactions when XRP already serves this purpose. She was asked to distinguish the capabilities of stablecoins in comparison to those of XRP.
Long articulated that Ripple views the two digital assets as mutually beneficial. She elaborated on how XRP and RLUSD serve dual purposes, addressing the needs of two distinct client groups: those in payments and those who develop.
**RLUSD and XRP: Enhancing Payment Efficiency**
In payment scenarios, Long observed occasions where completing transactions in US dollars is more economical for customers. This is particularly true for well-established trading pairs like USD/EUR, where the market’s depth renders a bridging asset such as XRP redundant.
Moreover, Long pointed out that the XRP Ledger’s users have always envisioned XRP as an impartial digital currency, ideal for bridging purposes. Ripple has consistently advocated for XRP’s role as a bridge currency since its inception, aiming to facilitate the Internet of Value’s future, where diverse assets are digitized on the blockchain.
Ripple champions XRP as a pivotal tool for effective settlements across different currencies or tokens, especially for less common assets and currencies. Long highlighted situations in regions like sub-Saharan Africa, Europe, and the Middle East, where transaction costs can soar due to limited liquidity, sometimes exceeding 10% of the payment value, underscoring the importance of XRP.
**RLUSD: Empowering Developers**
Turning to developers, Long emphasized the significance of the US dollar as the industry’s gateway currency, serving as the initial step for purchasing cryptocurrencies or other digital assets and for trading activities.
She underscored Ripple’s optimism about the decentralized exchange (DEX) within the XRP Ledger. To augment the DEX’s value for developers, the presence of robust stablecoins is crucial.
Consequently, Long disclosed Ripple’s increased focus on decentralized finance (DeFi), with USD-based stablecoins being a vital element of this ecosystem.
The recent discourse on RLUSD’s supportive role to XRP has garnered considerable interest within the XRP community. Vet, an esteemed dUNL validator on the XRP Ledger, commented on the interview, offering further insights.
In prior discussions, other Ripple leaders, including Chief Technology Officer David Schwartz, have stressed that the imminent stablecoin is designed to complement, not replace, the functionalities of XRP.
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